Sunday, September 30, 2012

CRUISE OF THE GHOST SHIP

All aboard for the cruise of your life. Your course is set, but the problem is there really is no captain or crew. You're on a ghost ship. No one has ever been on this course before. A global game of currency wars between the developed over-leveraged nations debasing their currencies in a devious game of chicken. How long can they pay for their over-extended borrowing game to pay for the lifestyle, their entitlements, their military, their infrastructure?? Now it has reached the "end game". In other words who will blink first? How long will the cooperative global debasement of currencies/sovereign nations be maintained. How much "austerity" will some country's citizenry take before the unholy alliance of the politicians begins to break down. Can the technocrats keep the banker's strangle hold on the proles. Is it possible for this end game to play out to a completion? A tremendous amount is at stake. Can hubris trump the proles? It has for decades even centuries.

http://www.zerohedge.com/contributed/2012-09-30/3-time-emmy-award-winning-cnn-journalist-mainstream-media-takes-money-foreign

Now the game is shaping up into clear sides. The haves (resource rich countries).......and the developed world (the have nots).......That's correct we are now the have nots and our reserve currency status is still maintaining the Petrol dollar stranglehold on the "haves" and they are becoming increasingly unhappy with our bully status. Now you are starting to recognize WHY our military is really there. Preserving our "way of life" is only part of the reason. Preserving the entire "system" of corporate, oligarchy is more accurate. The West vs the East. The mastery of not only the developed nations but the control of the developing nations into the global system. "Ultimate Control" is the end game. Out of chaos will come order. Right now we are entering chaos. The other side is the ultimate goal with complete global domination. Expecting us to get there without paying a price is not in the cards. Profligacy will have a cost.

If we get a sideways to downward move in PMs and PM equities over the next week or two, it would be very bullish as a nice handle on the $GOLD cup would be formed. On the other hand I really don't care at this point. Shaking out new leaves is expected and how they do it should not concern us here. The bullish move in PMs on this move is still early and will ultimately make your suffering from the past year or more seem like a cloudy memory. Own physical and stay positive for the "other side".

Thursday, September 27, 2012

CATHERINE AUSTIN FITTS

My Hero
If you don't know this woman, you aren't doing your homework. My first introduction to Ms. Fitts was during the collapse in 2008 when I was introduced to a PDF that contained a documentary that she had written detailing the money laundering and corruption that permeated our political system and Wall Street and the alliances involved. I wasn't shocked as much by her revelations (which were many) but by the fact that she was still alive and in possession of her faculties. Of course she was never allowed into any main stream media living rooms, which probably was good for her health. In case you aren't familiar here are a couple of lines.


Fitts served as managing director and member of the board of directors of the Wall Street investment bank Dillon, Read & Co. Inc., as Assistant Secretary of Housing and Federal Housing[1] Commissioner at the United States Department of Housing and Urban Development in the first Bush Administration, and was the president of Hamilton Securities Group, Inc., an investment bank and financial software developer.
Fitts has a BA from the University of Pennsylvania, an MBA from the Wharton School and studied Mandarin at the Chinese University of Hong Kong. She publishes a column, "Mapping the Real Deal," in Scoop in New Zealand.

How's that for a major player? She is not a second rate bit blogger trying to connect dots. She was a dot. A big dot. She was someone that knew where the bodies are buried....literally and figuratively. She even has the audacity and courage to speak out. She feels it is a moral imperative and her duty as a patriot. I know......crazy talk....but there it is. If you want to know how the game works from a true insider try this on for size


This post was triggered by paladins comment on Fitts. Here is an excerpt ........The Fed is now where mortgages go to die. Thousands of mortgages on homes that do not exist or on homes that have more than one “first” mortgage are now going to the Fed to disappear. Thousands of multifamily and commercial mortgages will be bought up as well. As this happens, trillions of dollars that have been amassed offshore will be free to come back into the US to buy up and reposition land, farmland, residential and commercial real estate and other tangibles.
With documents shredded, criminal liabilities extinguished and financial institutions made whole, funds can return without fear of seizure.
QE3 proves beyond any shadow of a doubt that the extent of the fraud was as bad as I said it was. You can count up the bailouts and QE1, QE2, QE3 the numbers speak for themselves. The fraud was indeed in the many trillions of dollars. It was intentional. It was a plan.
Now, the $64,000 question for those whose house is underwater or whose mortgage is in default is whether or not you still owe on your mortgage. Certainly, you still do as a legal matter. If the bank has been paid off, arguably in some cases several times, why not you? Let’s see if Fannie, Freddie and the big banks are under orders to quietly pass through a portion of their largesse to troubled homeowners in amounts sufficient to unfreeze the market. If you are in a workout situation, you need to take notice. If enough mortgage write-offs flow through, the Democrats will quickly amass a lock on the elections in November.
If you are in the market to buy a home or other real estate, you also need to pay attention – a major turn is now underway. Watch to see how much the banks pass through to homeowners and property owners to see how fast and big the turn may be. Watch to see the inflow of funds from offshore. This is not only funds returning but investors around the world looking to exchange their dollars for tangible assets to protect themselves from debasement of the dollar denominated deposits and securities they hold. Watch to see what the renegotiation of federal tax policy and the reengineering of the federal budget in response to the “fiscal cliff” do to reposition housing and real estate prices and cost of financing for an inflow looking for large accumulations.
Finally, the way the Fed has engineered the Slow Burn to date is to continually offset monetary inflation with labor deflation. It is worth contemplating how much labor deflation will be required to offset QE3 and how sufficient additional labor deflation might be engineered. Ben Bernanke was quite clever to tie QE3 to unemployment. The problem has become the solution, which is the basis for QE-Infinity.
Beware .....full moon risin'........evil is afoot.......or as I like to say......might as well make some money while Rome burns.....




Wednesday, September 26, 2012

This is the "other side". This is the side that you are subconsciously trying to convince yourself that you won't see here because we are "special". That our debt can be paid for by magic money. By digital magicians from afar without anything in return....or as Andy Williams once said..." We're after that same rainbow's end, waitin' 'round the Bend".....and we are waitin' folks but you're not gonna like that "Bend".....Here is a sample for all of us to see....


Giorgos Loukas, a former electrician, said austerity measures had reduced his monthly pension from €1,100 (£875) to €750 (£600) . "We're being stripped of everything we have," the 66-year old said. Both his wife and daughter are unemployed, and all three survive on his income. "Where is European solidarity? We're being insulted as a nation but I will never beg at soup-kitchens for food – my dignity is all I have left."
Greece has been told to implement a succession of spending cuts and structural reforms in an effort to bring down its massive debt in exchange a bailout of nearly €200bn (£160bn). But many experts warn that the measures are only making the recession deeper. One in two youths is out of a job while thousands of educated and skilled professionals are fleeing the country in search of opportunities abroad.
"I feel my country is on auction and we're just an economic experiment," said Dimitris Palles, 49, a physics researcher at the National Hellenic Research Foundation. Mr Palles, 49, who's seen his annual salary drop from €24,000 (£19,000) to €19,500 (£15,500). "No level of political mismanagement can justify the pain we're being asked to endure," he says.
Greece's international creditors were also reported to be loggerheads yesterday over how to solve Athens' debt crisis, as the International Monetary Fund (IMF) demanded that European governments write off some of the Greek debt they hold. According to Reuters, tensions between Greece and the "troika" of European Union, European Central Bank and IMF have escalated as the IMF pushes to restructure Greek debts to public-sector foreign creditors, whereas EU leaders would rather give Athens more time to meet the demands of its bailout.
Public healthcare is one of the sectors that has been gravely affected by the crisis in Greece. Chemists and pharmaceutical companies have stopped giving drugs on credit to medical insurers saying they haven't been paid in months by the state.
Meanwhile, Greece's power company cut the electricity at a kidney hospital on the island of Aegina for several hours on Tuesday while the patients were undergoing blood dialysis, forcing the centre to rely on its generator. from the UK Independent

Any wonder of course that Greece and Spain are in chaos with unemployed youth over 50%.....and the unfunded liabilities taking front and center now. They had better get ready and move quickly (and they will).....to crackdown and at the same time throw some fiat onto this fire...(and they will).....This is all being studied so just sit back and do the same. Monetization is ramping and be prepared. Austerity is a bitch and the peeps are not going to take any of it without a fight. They may have to stop watching football and stuffing bon bons in their face but they will fight.....of course until they are crushed like bugs.

Miners looking better and better...letum have their fun.



EUROZONE AUSTERITY WELCOMED

Joyful Spansh citizens turned out yesterday en masse to welcome austerity cuts to the Spanish budget. Police swarmed the turnout in an attempt to control the celebratory display. Several Spanish politicians wanted to join their adulatory fellow proles but decided the better part of valor might be to have the black clad militarized police to greet the crowd with some jack-booted, baton wielding welcoming instead. CNBS reported from afar proclaiming the demonstrations of affection for maintaining the Eurozone had become too boisterous and some rubber bullets were used to quell the outpouring of enthusiasm. Of course the proles demonstrations will be taken into consideration as the Euro-planners consider the next bailout for Spain. Only a guess here but after the festivities in Madrid, the money printing may start printing much faster and in larger amounts.....especially if the Greek celebrations for austerity are equally raucous today.

For those of us concerned with our own employment problems in the U.S. one only has to look at the terrible labor problems for the NFL referees. EVERYONE dutifully mentioned the "CALL" on Monday Night Football. These are the issues that we as Americans are concerned about and focus our attention on. This is what represents our focus of attention.........football. Diversions of the proles still are able to keep the masses in check. Most proles could care less about the overseas breakdowns. Most Americans have no idea that under 26 employment in Spain and Greece is now over 50%. Let's not get into what else the populace is dumbed-down on.....it only elevates frustration.

All of these issues will only add to the need for Central planners to monetize quicker and more dramatically. If the proles begin rioting then measures to placate the violence will be taken. Printing is the least violent of measures and we don't need to imagine what the next steps will be. In fact many of those steps are already in place.....its like slowly boiling the frog.......you just don't realize it.

Pay attention to Greece today....General Strike is called and a large crowd is expected....look for another day of brawling on CNBS. Is this the real deal? I doubt it. Just another prelude to the real deal which is coming sooner than later. But today should give some pause to the general equity market as the Greece proles show their disdain for austerity.


JOHANNESBURG (AP) — AngloGold Ashanti says strikers are halting all its operations in South Africa which provide 32 percent of the multinational’s gold production.
Strikes demanding higher salaries began at a Lonmin Platinum mine Aug. 10 and have spread to several others in the mining sector vital to Africa’s largest economy. Anglo American Platinum workers have been striking for weeks. The labor unrest spread Monday to the transport sector with a major union saying 20,000 road freight employees are demanding a 12 percent pay rise.
Spokesman Alan Fine said strikers prevented Tuesday’s night shift from starting at AngloGold Ashanti’s West Wits and Vaal River operations. They joined co-workers who downed tools at AngloGold’s Kopanang mine on Sept. 20.
Fine said strikers among 36,000 workers at the three sites have not yet made demands.end of story marker


PM equities are having some much needed air let out of the trade. If you do trade you are getting a nice re-entry....if you didn't get in the trade some of the miners are getting on sale again. Have fun......this casino is going to get wild........gl

Monday, September 24, 2012

NO PLACE FOR A HERO

Not in this game. This is only for those that want to play in the most loaded craps game ever rigged. The problem is there is ten thousand pounds of high explosives under the casino and no one but the house knows when its rigged to blow. So enjoy the game. If you like those odds then this game is perfect for you.

Today's action was relatively easy to anticipate but that doesn't help with the rest of the week. Most of the daily charts remain overbot and several more days of sideways or down action would be very bullish for the PM miners. Some of the miners have achieved a buy here but most could use some more side ways backing and filling here. I remain convinced that the risk in this move remains NOT overtrading your positions so do so at your own risk....as usual. The move off the bottom of these miners has been powerful....but when its over you will most likely be shocked at its intensity before we get a major pullback in this 10 year (so far) secular bull market. We remain in a modern supercycle debt collapse that will meet its destiny in a resolution that hopefully will not be cataclysmic but with a whimper and a peaceful transition into a new currency and economic regime...........I remain hopeful. For certain however the Moneymen are going to print this into another realm of reality. That will remain the fuel for this trade. Ignore the talking heads and concentrate on your trade.

If we get some follow up side ways trade this week then I am happy. If we get a strong push up the next few days then maybe a little profit taking. Remember end of the month window dressing. gl all




Sunday, September 23, 2012

TIME TO SHAKE THE LEAVES

Its fall now. Its the best season of the year. Its a time to prepare for winter and the cold winds that will follow. Since mid July when the $HUI formed a monster weekly bullish engulfing candle that I discussed then that formed a higher low confirming that we were most likely at the end of the stealth accumulation by the boyz and that you should have been accumulating miner shares with them. Now we have enjoyed 9 weeks of a monstrous up move with virtually NO pullback. You gained little advantage trying to trade your position during this time. THEY DID NOT WANT YOU ON THIS TRADE. Guess what? THEY STILL DON'T WANT YOU ON THIS TRADE. The question is did they get the hedges and retail schmucks back on enough to flush them again or do they need some more bullish sentiment to build. I don't know.......but I bet I can tell you in the next three weeks. They will rip it back within that time period. Should you sell? That's up to you. NO ONE can tell you after a run like this to NOT take some profit. Just remember.......we could be in one of the biggest bull runs in Miners EVER! Then again....if we are we should suspect every conceivable trick in the psyops war on sheeple investors imaginable. Right now the MSM are starting to tout the virtues of gold and silver daily after this fabulous run up. Prior to the runup when you could have been accumulating very cheap shares NO ONE would advise you owning the miner shares other than the usual pumpers on the Precious Metals websites. Most of those websites were in total chaos with the cheerleading pundits being bombarded by the commentors crying about their paper losses. All of those developments were screaming bullishness in the stealth accumulation of the miners that had transpired since the May low. Thats right the MAY LOW! We talked about that possibility incessantly back then and they were still able to keep it looking like it was in a BEAR market. They are good. So why the low price and individual miner rotation and beatdown kept the sentiment bearish the real power was accumulating and preparing for what would occur eventually during the last nine weeks. EXPLOSION......at least in retrospect and explosion. Just look at those charts. Purely amazing. That was then and this is now if you are trying to short term trade this. Some of the players here use different strategies and have decided to let the casino have their fun with the shorter term traders like the hedges and the retail players that think they can beat the house. They are sitting tight and watching the action with fully invested positions and just holding. For those that think they can beat the house you may get a nice entry in the next three weeks. Maybe even this week. You know its coming but how quick will it be and will you get in????? WELL......Will You?? They do have to shake leaves though don't they........but how high will it be when they shake that tree of leaves? How high??? Three weeks is a long long time. I have advised NOT overtrading this ride for weeks now. I have not switched my advice. But if you want to take some profit here and hold most of your positions then its not a bad spot to do that. I still think in a few months this move will be much higher.



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Thursday, September 20, 2012

NEARING THE FISCAL CLIFF

Is this how Ben is approaching the fiscal cliff? Maybe. Time will tell. Right now its all buying time. The real game is going on behind the scenes. The real game has a lot of moving parts. Most of the movement is in areas that we are not even remotely privy to. This is all about balancing and rebalancing.  Which country "gets out alive" is the ultimate game. Global powerhouses like the U.S. Russia and China are trying to assure that they retain their status or even climb over the the King and claim the new title. China is certainly positioning itself for the future powerhouse status holder but can it out position the champ? Russia is lurking in the shadows watching both of the Goliaths probing one another for a weakness. Paper is the game right now and its all about the reserve status of the paper dollar. Paper depends completely on confidence. You will increasingly hear more and more on CONfidence as this game progresses. At one time we could say our strong dollar policy and our country stood for the rule of law and freedom. That was until the last few decades. Our game got out of control. Absolute power corrupts. And we are absolutely, irrevocably broken....and that is putting it politely. This has weakened our republic so badly that it is now vulnerable NOT just to the Chinese and the Russians.....but more importantly its vulnerable to a worse enemy.....and that is to the rot within. Our own internal disease of hubris and corruption seems unstoppable now. It is now a force that has gained its own unstoppable momentum ...hellbent on taking the nation straight into the fire.

The rest of the sharks are watching the grand old shark start to gorge itself on corruption and are looking for the right moment to strike. Putin is very aware of who is running the show and so is China. They know that positioning now will be crucial for survival and entering the next phase of the World power game. Both are accumulating precious metals in an ever increasing pace. China has accumulated a massive amount of natural resources and access to them through alliances with developing nations rich in natural resources. They could never have been that successful without our own complicity in our demise. We betrayed one too many of OUR dictators. We betrayed one too many developing democracies. To paraphrase Smedley Butler.....we screwed one too many of our friends for the International Fruit Company owners. You can get away with the game for a long time but eventually the truth becomes just too obvious. CONfidence....eventually it will have to be restored if there is any chance to avoid utter catastrophe.

We need a pullback in PMs but don't count on it before another move over 1800. A nice rollback to about 1740 should provide a really nice base. I really don't care and don't have enough cash to trade much. Just watching with a full load.